MOM Advisory To Employers of Indonesian FDW on Indonesian Embassy New Performance Bond

The Ministry of Manpower (MOM) has issued an advisory to all employers of Indonesian FDW regarding the Indonesian Embassy's new performance bond requirement. Under this bond, the employer is liable to pay $6000 to the embassy should they forfeit the bond.

MOM has clarified that the Indonesian embassy bond is not a requirement of the Singapore government and that the ministry is concerned that there appears to be a lack of a proper mediation or dispute resolution process available to employers before the Indonesian embassy can forfeit the bond.

Some questions:
1. How do you think this will affect the demand for helpers from Indonesia?
2. Are current employers in a catch 22 situation? Are they better off signing or not signing the new embassy contract and thus having to purchase the Indonesian embassy bond? And if they don't sign, can they continue employing the Indonesian helper?
3. Is the alternative suggested by MOM to look for helpers from other countries or to engage part time help the way to go?
4. How will the new measures affect Indonesian helpers already working in Singapore, especially if they need to renew their passport or go for home leave?